US Financial News: news summary | 18 July 2023
US Finance News: Latest Updates
Headlines | Tuesday, 18 July 2023
- Biden administration cancels $39bn in student loan debt for 800k borrowers
- Inflation in the US dropped to 3% in June,lower than forecast
- June jobs report: The US economy added 209,000 jobs in June as labor market cools
- Federal Reserve expected to raise interest rates later in July
- How to participate in the SNAP Program as a merchant
- The White House announces the SAVE planto help student loan borrowers
US banks' mortgages face mandates exceeding global standards
US bank regulators are set to release their plans next week for a sweeping overhaul of capital rules, with the latest draft including requirements for large lenders' residential mortgages that go beyond international standards, according to Bloomberg News.
The changes would be part of the US version of a global accord known as Basel III that followed the financial crisis, according to the report.
The plans are set to be unveiled on July 27 by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (OCC), according to Bloomberg.
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Every month, the Social Security Administration sends money to different beneficiaries, including retired workers and survivors. It also mandates disability payments, which include the Supplemental Security Income program and Social Security Disability Insurance.
SSA has already sent some payments for this month and is continuing to send the remaining payments.
Here’s how much money is sent on average and what payments are sent on July 19.
The cost of housing in the United States has increased by 3.5% since January, as inflation in other goods and services markets has begun to fall. Renters are feeling the pinch, with the average rental price rising 8.3% since June 2022. While part of the rise can be explained by the decrease in rental prices seen in the early months of the pandemic, prices remain 20% higher than they were in the summer of 2019. These substantive increases come as real wages for private sector workers in the United States have fallen by 1.2% in the same period.
Here are the top ten rental markets that have seen the most rapid price growth this year
Homebuilder confidence up as demand for new construction continues
Builder confidence was positive again in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
The index reading rose to 56 from 55 in June, marking the seventh consecutive month that sentiment increased and marking the highest level since June of last year. Economists polled by Bloomberg were also anticipating a 56 reading for July.
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Teaching is an important and difficult job. Educating minds comes with a lot of responsibility, but sometimes the pay is low.
According to the most recent Bureau of Labor Statistics Occupational Employment and Wages report, the average annual salary of an elementary school teacher in the United States is $68,000.
According to the same report, the median salary for high school teachers is $67,790 a year. However, the pay varies from one state to another in the country, and there are some where the salary is higher than average.
Find out which states offer the best compensation to teachers.
Bankers say US consumers in good shape
Consumers are still keeping up with their loan payments despite rising costs and a worsening economic outlook, according to executives at the largest US lenders.
However, some borrowers whose finances stayed resilient during the pandemic are starting to fall behind on their loan payments, top bankers said.
"The consumer's actually in pretty good shape," said Bank of America CFO Alastair Borthwick, citing elevated deposits and strong asset quality.
The leader of JPMorgan Chase, the nation's largest lender, also said consumer finances remained resilient.
"Even if we go into recession, they're going with rather good condition, with low borrowings and good house price value still," said JPMorgan CEO Jamie Dimon.
(REUTERS)
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Month after month the Social Security Administration issues millions of payments to the beneficiaries of its program, who are mostly retired workers. Payments are also issued for seniors and disabled individuals of any age.
Now that a new month is fast approaching, here is the Social Security check distribution schedule for August: when it will arrive, exact amounts and payment dates.
Real wages are moving up
After inflation made dramatic cuts into purchasing power over the last year, the BLS reported that between June 2022 and June 2023, real hourly wages for workers increased 1.2 percent. This figure accounts for the impact that inflation has had on wages.
This increase while not likely to provide much comfort to many households, shows that workers still hold some power in the labor market to demand higher pay as the demand for labor continues to remain elevated.
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Employer-sponsored retirement plans like 401(k)s and pensions are becoming more common. Successful savers may utilize either method to maximize employer contributions and other retirement advantages as they prepare for retirement. So what are the distinctions between these two pension programs? Read our full coverage to find out.
President Biden announces loan forgiveness efforts that will impact 800,000 borrowers
My Administration is delivering on that commitment. Starting today, over 800,000 student loan borrowers who have been repaying their loans for 20 years or more will see $39 billion of their loans discharged because of steps my Administration took to fix failures of the past. These borrowers will join the millions of people that my Administration has provided relief to over the past two years – resulting in over $116 billion in loan relief to over 3 million borrowers under my Administration.
Those looking for a temporary job this summer in Florida may be in luck. With tourism, particularly in the warmer months, being one of the Sunshine State’s largest economic sectors, jobs within the industry are typically highly demanded in the summer. According to data from the Bureau of Labor Statistics (BLS), there are over 650,000 jobs available in Florida; however, not all of these are temporary.
For those solely interested in a summer job, those in the hospitality, retail, or educational sector, may be your best bet.
Could leisure and hospitality be under pressure in Florida this summer?
This year the leisure and hospitality sector in Florida could take a massive hit after a series of controversial immigration laws have soured many potential visitors’ impression of the state. Additionally, earlier this year, the NCAAP issued a travel warning for people of color, women, immigrants, and the LGBTQ+ community, saying that those who visit should “be aware that your life, your full being, is not valued by Florida’s so-called leaders.”
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Aiming to boost public transit ridership, reduce car commutes and carbon emissions, and provide relief for low-income riders; various cities in the United States have begun to eliminate public transportation fares, making it completely free - fare-free - for a good part of the population.
SNAP recipients in can receive money back that was scammed. Scammers using ‘skimming’ devices to steal Electronic Bank Transfer (EBT) cards from some of America’s poorest families have taken millions of dollars.
However, to counter this, spending plans announced by the US Department of Agriculture last December requires states to reimburse stolen funds. Maryland was the first state to have their plan approved, rescuing $2.5 million for nearly 4,000 victimes.
A breakdown of ‘skimming’ scams
‘Skimming’ is the act of capturing credit card data without the cardholder’s knowledge. Criminals use skimming devices to gather this information, which can then be used to create counterfeit cards or for other fraudulent purposes.
The cardholders will be unaware that their information has been compromised until unauthorized charges appear on their accounts or they experience other forms of identity theft. This is particularly troubling for SNAP beneficiaries due to the precarious financial situation that necessitates the use of SNAP in the first place.
The Social Security Administration sends payments to different beneficiaries each month, including retired workers, survivors, and those receiving disability benefits from the Supplemental Security Income program and Social Security Disability Insurance.
The SSA continues to send monthly payments for 2023. The agency has already sent payments for the first half of the year and the first two weeks of payments for July.
Here are the payment dates of the remaining benefits from July to December.
Twitter in the red due to nearly 50% drop in ad revenue
Twitter's cash flow remains negative because of a nearly 50% drop in advertising revenue and a heavy debt load, according to Elon Musk, falling short of his expectation in March that Twitter could reach cash flow positive by June.
"Need to reach positive cash flow before we have the luxury of anything else," Musk said in a tweet replying to suggestions on recapitalization.
Musk said in another tweet that Twitter did not see the increase in advertising revenue that had been expected in June, adding, "July is a bit more promising." Twitter Spaces also hasn't generated revenue yet and is "all-cost", Musk said.
This is the latest sign that the aggressive cost-cutting measures since Musk acquired Twitter in October alone are not enough to get Twitter to cash flow positive, and suggests Twitter's ad revenue may not have recovered as fast as Musk suggested in an interview in April with the BBC that most advertisers had returned to the site.
(REUTERS)
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Steep housing prices in the United States are not affordable for many, which is why millions of people choose to rent houses or apartments. After the covid-19 pandemic, rental prices skyrocketed.
However, a recent analysis indicates that they have now fallen in some areas.
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In June, the US economy experienced a slower growth compared to the previous month, with the addition of 209,000 jobs, falling short of the predictions made by Wall Street analysts. This data, provided by the Bureau of Labor Statistics, represents the first time in 15 months that non-farm payrolls have been lower than expected by financial experts. The unemployment rate for June was 3.6%, in line with economists' expectations, a slight decrease from the 3.7% recorded in May.